It will take time for auto remanufacturing to reach the market


Recently, the "Decision of the State Council on Amending the "Administrative Measures on the Retirement of Used Vehicles" (Draft for Comment)" (hereinafter referred to as the "Consultation Draft") was officially released. The five major assemblies are allowed to enter the remanufacturing field, and scrapped cars are no longer used as special industry management, and automobile remanufacturing is finally dawning. "Major and more favorable" made the people in the industry rejoice, and related companies are also gearing up to prepare for the "big one." However, calm down, when the “Draft for Comment” was landed, how to strengthen supervision in the future, how to get through the remanufacturing of parts and components circulation market and other issues still plagued the development of China’s automobile remanufacturing. At present, automobile remanufacturing has only ushered in policy favors, and it may take time before we can actually go to market.


In general, in the mature automobile society, the proportion of automobile remanufacturing in the automotive industry can reach 2% or more, while China's automobile remanufacturing currently only accounts for about 0.2% of the market share. Although in recent years, the relevant departments have also continuously promoted the development of automobile remanufacturing in terms of circular economy and green development, they have not really broken the bottleneck of remanufacturing. The reason is that the State Council’s Decree No. 307, which has been implemented since 2001, has incorporated the scrapped recycling of automobiles into the management of special industries. It is strictly forbidden for the five major assemblies to enter remanufacturing, but must be scrapped as waste materials. Under strict management and control, the market has shrunk, and “the absence of rice” has caused the remanufacturing of automobiles to stagnate. This year's "Consultation Draft" has been issued by the industry for many years, and it has relieved the curse that restricts the development of the industry. The five major assemblies are allowed to enter the remanufacturing field, and finally solve the problem of “raw materials” for remanufacturing of automobiles. The next step depends on how companies make “good food” and meet the market demand.

However, with delight, regulatory issues also followed. Over the years, the informal operation of end-of-life automobiles in China has plagued the development of the industry, leaving large numbers of scrapped cars to be illegally dismantled by informal enterprises, and irrespective of how much of them flow into the remanufacturing sector, and it is only zero for some informal automobile repair networks. The source of the parts is enough to see the confusion caused by the failure of supervision. Today, the five major assemblies have been released and allowed to enter the automobile remanufacturing field. If supervision is lacking, it is feared that these non-formal parts and components will not only enter the remanufacturing field, but are likely to enter the fields of used cars (parts) and automobile maintenance. By then, I am afraid that it will bring new problems to the auto remanufacturing market and affect the orderly development of the industry. It is hoped that when the “Draft for Soliciting Opinions” is dropped, corresponding regulatory measures can also be put in place, so that the good policy can be truly implemented.

If 2% of the market share is a "standard" for the remanufacturing of a mature automotive society car, then China's automobile remanufacturing will usher in a vast market. However, what needs to be seen is that at present, ordinary consumers in China are not very receptive to automobile remanufacturing. Today, as new car prices continue to be explored, how many consumers are willing to accept a car whose main parts are repaired and replaced by remanufactured parts? This can be seen from the current hot new car market is much higher than the used car market. From this point of view, China's automobile remanufacturing may still have a long way to go, and among them, the guidance of consumption concepts and the cultivation of the consumer market cannot be accomplished overnight. Especially at present, the integrity mechanism of the auto aftermarket has not yet been established. It is not only necessary for auto remanufacturing to open up the consumer market but also the quality of its own products, and it needs to be recognized by consumers. Although the concept of green development has risen in China in recent years, the concept of automobile remanufacturing has affected ordinary consumers, but it is by no means a day's work to understand and accept it. In the long run, the acceptance of the consumer market is critical to the development of automobile remanufacturing. This requires that relevant companies and practitioners in China truly value quality and integrity management.

It should be said that the issuance of the “Draft for Soliciting Opinions” has provided an important booster for the ice-breaking development of the automobile remanufacturing industry. However, the real development of the market and the acceptance of remanufactured products by consumers require continuous improvement and supervision of policies. The gradual completion of the implementation and market maturity.



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